Posted by Craig on April 11, 1999 at 16:27:37:
Absolutely right. Not only do you know where the money for the notes are. You also know and do all of the packaging processing, and mediating. You well deserve to make money on the deal and if someone has problem that you are not the principle then walk. The fact is whether or not you are a principle or broker, that note seller has an amount in mind that they will sell their note for. If you can get them that amount or better then it does not matter what capacity you go about doing it in. You could however learn to buy in your name and pass through to your investors and say “yep I am the principle” in which case you are. Ask those same people if the people over at their bank are the principle lenders. The bank will tell them yes, but the fact of the matter is that the bank is selling that loan immediately or very soon after to someone else for a profit. You are an intermediary just like the bank and you deserve compensation for your knowledge and services.